The Sky ecosystem community has voted to remove Wrapped Bitcoin (WBTC) as collateral due to recent changes in ownership and control.
Sky Removes Wrapped Bitcoin (WBTC) as Collateral
After a three-day governance vote that ended on September 19, the decentralized lending and borrowing platform overwhelmingly passed the decision to delist WBTC. The proposal received 88.17% of the votes, equivalent to 95,826 MKR. There were 11.83% abstentions and no dissenting votes, but only 13 MKR “whales” participated in the vote.
Currently, Sky’s decentralized liquidation protocol, SparkLend, has $61.38 million worth of collateralized debt backed by WBTC.
In August, BA Labs, an advisor to the DeFi protocol, expressed concerns about WBTC. By September 12, the group proposed removing WBTC variants from SparkLend and Legacy Vaults due to “a change in ownership and control of WBTC,” likely involving Justin Sun or affiliated parties. This poses serious counterparty risk.
Sky is XEM at alternative forms of Wrapped Bitcoin like Coinbase's cbBTC and Threshold's tBTC.
Sky is not the only DeFi platform looking to reduce its exposure to WBTC. On September 18, AAVE discussed limiting WBTC due to similar concerns regarding BitGo. However, in a post on social media X on September 19, AAVE founder Stani Kulechov clarified that “AAVE is not removing WBTC, this is just a proposal from one of the risk providers to limit WBTC.”
There are currently about 152,942 WBTC on Ethereum with a market Capital of about $9.6 billion, down nearly 40% from its peak of $15.8 billion in November 2021.
Follow CoinMoi to update the hottest issues of the crypto market ok!!!
The articleSky to Drop Support for Wrapped Bitcoin After Vote appeared first on CoinMoi .
